New project funding agreement

RNS Number : 3405V

eEnergy Group PLC

06 August 2020

 

6 August 2020

eEnergy Group plc

("eEnergy" or "the Group")

New €15 million Irish project funding agreement with SUSI Partners

eEnergy Group plc (AIM: EAAS), a leading "Energy Efficiency-as-a-Service" (EEaaS) business in the UK and Ireland, is pleased to announce a major agreement with a new project funding partner, SUSI Partners AG ("SUSI").

Under the agreement, SUSI, via its Energy Efficiency Fund II, has provided a dedicated funding facility ("The Facility") to the Group of up to €15 million.

The terms of the Facility provide for SUSI to purchase the future receivables arising from new Light-as-a-Service ("LaaS") projects in the Republic of Ireland across the education sector, other public bodies and a range of commercial sectors. The payments by the client are always funded by the customers' energy savings. The Facility will cover new projects installed for the next three years or until the Facility has been fully utilised, whichever is earlier.

Given the opportunities perceived in the Irish and UK markets, the Group is working with SUSI to develop this agreement into a longer-term funding partnership, beyond the current committed Facility size and with the potential to fund LaaS projects in the UK.

This new funding structure provides the Group with a significantly enhanced competitive advantage, relative to the previous funding arrangements. The Facility provides the Group's Irish business with greater flexibility to deploy capital, extend the length of contracts offered to customers and improves the economics for the Group.

The Group will have control over the implementation and management of contracts and retain an economic interest over the life of each contract, thereby improving returns.

Harvey Sinclair, CEO of eEnergy, commented: "Today's agreement will underpin our market-leading proposition in Ireland. The funding will allow us to grow revenues as we take on significantly more projects over the next three years to meet the increasing demand from schools and businesses. Post COVID-19, organisations are focused more than ever on reducing operating costs and if they can do this while reducing their carbon footprint, without the need for capital investment, it makes our offer even more compelling. 

"SUSI Partners` funds are a leading platform for financing energy efficiency projects across Europe and this agreement is an endorsement of our strategy. We are delighted to be working with such a prestigious organisation."

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

Contacts:

eEnergy Group plc	Tel: [phone]
Harvey Sinclair, Chief Executive Officer	[e-mail]; www.eenergyplc.com
N+1 Singer (Nominated Adviser and Joint Broker)	Tel: [phone]
Peter Steel / Justin McKeegan / Carlo Spingardi (Corporate Finance) Tom Salvesen (Corporate Broking)
Turner Pope Investments (Joint Broker)	Tel: [phone]
Andy Thacker / Zoe Alexander	[e-mail]
Newgate Communications	Tel: [phone]
Giles Croot / Robin Tozer	[e-mail]

About eEnergy Group plc

eEnergy is an established "Energy Efficiency-as-a-Service" (EEaaS) business currently focused on providing "Light-as-a-Service" to commercial customers through eLight. eLight helps businesses and schools switch to LED lighting for a fixed monthly service fee, avoiding any upfront payments. For customers, the energy savings are greater than the monthly service fee, allowing them to unlock free cash-flow from day one as well as to improve the quality of their lighting and reduce carbon emissions. eLight procures, funds, installs and maintains the LED lighting, meaning the customer has no risk.

eEnergy was admitted to AIM in January 2020. The Board's strategy is to develop eEnergy as a broader energy services company and acquire other businesses in the energy management sector. The market in the EU for energy efficiency services was approximately €25 billion in 2017 and is expected to double by 2025. 

eEnergy has been awarded The Green Economy Mark by the London Stock Exchange, which recognises a company's work on sustainability. 

https://eenergyplc.com/  

About SUSI Partners AG

SUSI Partners is a Swiss infrastructure fund manager specialising in clean energy infrastructure investments. The firm manages EUR 1.5 billion in investor commitments across six funds focused on opportunities in clean energy generation, energy efficiency enhancements, and energy storage and integrated solutions. With a successful track record of more than 100 transactions in 20 countries to date, SUSI Partners seeks to achieve attractive, stable and uncorrelated returns, while contributing to global climate targets by reducing CO2 emissions.

 

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